Tales from the Trail

Washington Extra – Waiting for Hugo

Grab a chair, some drinks and snacks and get ready for the show.

The United States slapped sanctions on Venezuela’s state oil giant PVDSA for trading with Iran, a move that could worsen Washington’s already sour relations with Caracas. Now we’re waiting for President Hugo Chavez to respond.

Expect a lot of noise, in typical Chavez fashion. In the warm-up act, one ally called the sanctions “ridiculous” and accused the United States of wanting to “once again…turn into the global policeman.”

Chavez himself might make some threats against his biggest foe, including an old one about cutting off oil supplies to the United States. He’s done it before — in 2004, 2006, 2008 and 2010, and maybe more times than we can count.

But it never comes to anything. The fact that 45 percent of Venezuela’s oil goes to the United States might explain why. With that kind of dependence, Venezuela is unlikely to stop the shipments, though there may be some tit-for-tat retaliation. The United States and Venezuela need each other, no matter what the Presidente says and no matter how long he talks.

Here are our top stories from Washington…

US sanctions Venezuela’s oil giant for Iran trade
The United States slapped sanctions on Venezuela’s state oil giant PDVSA in its latest effort to disrupt Iran’s fuel supplies, a move that may provoke a fierce response from Venezuelan President Hugo Chavez. The sanctions would bar PDVSA from access to U.S. government contracts and import/export financing. But their impact is likely to be modest, as they do not affect the company’s sale of oil to the United States and other markets.

Maybe we should just call it “Katrina-slick-gate”

USA-RIG/LEAK

Is “Katrina” the “gate” of the 2000s?

The 1972 Watergate break-in spawned an army of “gates,” as the expression “whatever-gate” became shorthand for any political scandal. The subsequent decades saw “Travelgate,”  “Irangate,” “Nannygate, ”Whitewatergate” and a host of other major and minor political improprieties.

Almost 40 years later, “Katrina” has become popular political shorthand representing the slow response to a disaster, a nod toward the aftermath of  the devastating 2005 hurricane in New Orleans by then-President George W. Bush. The perception that the Republican president cared too little about the people of New Orleans to respond quickly to a hurricane that killed some 1,800 Americans was devastating to his public image, and hurt his party in the 2008 election that brought Democratic President Barack Obama to power.

Pundits have been waiting for ”Obama’s Katrina” almost since he took office in 2009.

Chavez’s space plans have Foggy Bottom in stitches

Russian PM Vladimir Putin flew all the way to Venezuela for a quick 12-hour visit to boost oil and military ties with President Hugo Chavez, the loudest basher of U.S. “imperialism” in Washington’s backyard. 

VENEZUELA-RUSSIA/TIESBesides guns, tanks, jet fighters and missiles, Chavez wants a Russian hand in developing nuclear energy to cope with chronic electricity shortages in his oil-producing country, and technology to start a space industry.

“We are not going to build the atomic bomb, but we will develop nuclear energy for peaceful purposes,” said the former paratrooper who has been in power for 11 years.

Palin’s Exxon Valdez account draws guffaws

ANCHORAGE, Alaska – Sarah Palin’s new memoir, “Going Rogue,” already has been strongly criticized by John McCain’s aides for her account as a vice presidential candidate on the ticket with him in their unsuccessful 2008 race for the White House.

Now, add Alaskan experts who were involved in the case over the 1989 Exxon Valdez disaster saying her account over her role in the litigation is distorted for a number of reasons.

EXXON OIL SPILLIn the book, Palin claims to have helped the fishermen, Alaska Natives and other individuals suing Exxon over spill damages prevail in their legal case.

Is Chavez helping Iran build the bomb?

IRAN/

Veteran Manhattan DA Robert Morgenthau is on Hugo Chavez’s case.

Morgenthau warned last week at Washington’s Brookings Institution that Iran is using Venezuela’s financial system to avoid international sanctions so it can acquire materials to develop nuclear weapons and missiles.  He urged more scrutiny of the “emerging axis of Iran and Venezuela” in an op/ed article in the Wall Street Journal, in which he said a number of mysterious Iranian factories had sprung up in remote parts of Venezuela.

Chavez’s man in Washington, Venezuelan Ambassador Bernardo Alvarez, called the allegations “outrageous … unfounded and irresponsible” in a letter to the district attorney seen by Reuters.

True, leftist President Chavez has done little to endear himself to Americans. A fierce critic of the United States, his foreign policy rule of thumb is my enemy’s enemies are my friends. His last trip abroad included visits to Libya, Algeria, Syria, Iran, Belarus and Russia. He loudly announced plans to buy Russian tanks and anti-aircraft missiles.

from Environment Forum:

Calling Dr. Strangelove!

Perhaps you've heard about the Russian submarines patrolling international waters off the U.S. East Coast (if you haven't, take a look at a Reuters story about it) in what feels like an echo of the old Cold War. The Pentagon's not worried about this particular venture, but there are concerns from the U.S. energy industry about another Russian foray -- this one in concert with Cuba. In rhetoric that may ring a bell with anyone who saw the 1964 satirical nuclear-fear movie "Dr. Strangelove,"
the Washington-based Institute for Energy Research is sounding the alarm about a Russian-Cuban deal to drill for offshore oil near Florida.

"Russia, Communist Cuba Advance Offshore Energy Production Miles Off Florida's Coast," is the title on the institute's news release. Below that is the prescription for action: "Efforts Should Send Strong Message to Interior Dept. to Open OCS in Five-Year Plan." OCS stands for outer continental shelf, an area that was closed to oil drilling until the Bush administration opened it last year in a largely symbolic move aimed at driving down the sky-high gasoline prices of the Summer of 2008.

Environmentalists hate the idea. So does Sen. Bill Nelson, a Florida Democrat who has made opposition to offshore drilling one of his signature issues. But as it turns out, it's unlikely that anybody -- from Russia, Cuba, the United States or anywhere else -- is going to get petroleum out of the OCS in the immediate future.

McCain: ending offshore drilling ban eased oil price

ASPEN, Colo. – Republican presidential contender Sen. John McCain said on Thursday the recent sharp fall in the price of oil had been helped by the end of the U.S. federal offshore drilling moratorium.

“I think several factors have contributed to the recent drop in the price of a barrel of oil. I think the practice of conservation and the reduction in our demand has probably been a major factor,” he told the Aspen Institute.

“I also don’t think it was entirely accidental that the day that the president announced lifting the federal moratorium on offshore drilling, the price of a barrel of oil dropped.”